It can be recognized that at present artificial intelligence (AI) is far from being called "general purpose" AI - that is, being able to perform any tasks that a person can handle. Despite its limitations, AI has become powerful enough - at least to beat humans in mind games or even take on certain tasks in some professional fields. AI is being tested in a new role in Canada: Horizons ETFs Management Inc. preparing to open an AI-driven ETF.
Investment fund shares are traded on the stock exchange in the same way as shares of ordinary enterprises. The portfolio of ETF-owned shares is managed by a trust company. that is, people.
But this new AI fund (stock ticker MIND) will eliminate the need for managers (although it will still have a management company). MIND introduces an AI-driven investment strategy that analyzes 50 investment parameters. These parameters include cash flow data, last six months performance, 90-day volatility, beta and 80-day simple moving average.
The main thing here is that MIND is both an investment manager and an analyst. “The number of ETFs is constantly growing, and more and more investors want funds to diversify their investments more among different asset classes, different sectors of the economy and different countries / regions,” said Steve Hawkins, President of the Horizons ETF.
With a focus on efficiency
Efficiency is a major factor in handing over work to artificial intelligence. From a business perspective, this means maximizing profits while introducing intelligent automation. For example, robots in manufacturing can work faster than humans are physically capable. Robots are also better at coping with repetitive physical activities. Self-driving taxis can operate at any time of the day, since they do not need the rest required by human drivers. An AI computer can check insurance policies without the risk of missing important information. In general, intelligent automation leads to increased productivity through increased efficiency.
The same can be said for the MIND Foundation. By shifting investment management to AI, we eliminate human emotions and biases that can influence decision making. “The advantage of AI-only ETFs is the ability to analyze massive amounts of market data in seconds and make non-emotional decisions in the most efficient portfolio way,” Hawkins said.
Promotional video:
Vadim Tarabarko